The Insider: Ballmer says Google Apps aren't useful

Updated 10:00 pm, Sunday, October 19, 2008

FLATLINERS: Largely lost among the hype over Microsoft CEO Steve Ballmer's comment last week that a deal for Yahoo still "would make sense economically" was Ballmer's indictment at the same conference of Google Apps, Google's suite of online collaboration tools specifically for businesses, which include Web-based e-mail, spreadsheet and word-processing programs.

"Let's look at the facts. Nobody uses those things. And the usage data hasn't grown in seven months. They're just flat. ... Just like this," he said moving his hands side to side. "It's just like flat line. Exactly flat line."

Because Google has landed some big contracts for its Google Apps recently, including a $500,000 deal with Washington, D.C., we decided to check in with Ballmer's source -- tracking firm comScore -- to see if, in fact, usage of Google Apps was flat over the past seven months.

Andrew Lipsman of comScore said he could not share the data publicly, but it "looks like the statement was generally accurate."

But Google's David Girouard, who heads the company's enterprise division, says Ballmer's remarks were "flat-out incorrect."

"Usage has accelerated if anything," he said, adding that several people had forwarded Ballmer's comments on to him.

"Our products have grown every month across different Apps."

He said he was not aware that comScore was tracking usage of Google Apps and therefore could not comment on the firm's methodology.

But Girouard said that Google Apps' "most important metric" -- the number of users who have used Apps in the past seven days -- was "growing constantly."

He did not provide numbers on the growth over the past seven months -- but said there are now more than 10 million active users (granted, that's the same stat Girouard provided in a May blog post).

But Girouard said that with the start of the new school year there had been "fairly huge growth" in the use of Google Docs.

He said that most of the 10 to 15 universities that sign on for Google Apps each week were signing on in order to outsource their e-mail systems to Google.

But he said that many students were also taking advantage of Google Docs through their universities.

Girouard added that he expected that Microsoft would introduce some sort of Web-based offering allowing users of Microsoft Office to edit documents online soon.

But he said, "We don't find it a really great use of our time to speculate too much."

A LOTT OF LOBBYING: EADS North America last week appointed former Republican Senate Majority Leader Trent Lott of Mississippi to its board of directors.

EADS North America Chief Ralph Crosby said, "He will provide invaluable expertise as our company expands its presence in the U.S. defense and homeland security sectors."

EADS teamed up with Northrop Grumman to bid against Boeing for a lucrative Air Force contract and won. Boeing contested the contract and in the controversy following, the Pentagon decided to rebid the contract next year.

Earlier this year, Northrop Grumman hired Lott to help it stop the contract from being taken away.

As part of Mississippi's governing delegation, Lott already had strong ties to Northrop Grumman, as its Ship Systems division is one of the state's largest employers.

EADS North America also appointed Franklin Miller, who has held senior positions in the White House and the Defense Department. Miller works for The Cohen Group, a lobbying firm headed by former U.S. Defense Secretary William Cohen.

Because noting how powerful people are connected is fun: Cohen sits on the board of the American International Group Inc., which was just bailed out by the government.

A BLUE WIG HELPS:Pemco Insurance is looking for the region's biggest Seahawks fan.

The company has said that for each photo entry received in its "Ultimate Supercharged Seahawks Fan" contest, it will donate $1 to the Bike Helmet Program at Seattle Children's hospital.

Submit a photo by visiting werealotlikeyou.com or visiting Pemco's booth in Qwest Field's Touchdown City on game days.

The contest is sure to bring more hype for the insurance company's "We're a lot like you" advertising campaign.